MullenLowe went through a round of layoffs this week.
The layoffs were across all MullenLowe’s offices, with the exception of Winston-Salem, according to a source with direct knowledge of the agency’s operations, which attributed the decision to the impact of the coronavirus pandemic on the agency’s business. MullenLowe previously instituted a series of cost-cutting measures including executive pay cuts, a hold on raises, a hiring freeze and cutting freelance expenses in an attempt to avoid layoffs but announced on a recent virtual town hall meeting that the step was ultimately unavoidable, according to this source, who said the agency was extending healthcare benefits for those impacted, as well as helping with future job placement. The source estimated that around 15% of the U.S. work force was impacted, the majority of whom were at MullenLowe’s Boston headquarters. 882 employees are listed as MullenLowe U.S. employees on LinkedIn.
Anonymous sources which reached out to AgencySpy said MullenLowe’s Boston office made the announcement on Tuesday, followed by its Los Angeles office yesterday.
One former MullenLowe employee said the layoffs occurred across the agency’s account, creative and PR departments.
Around a third of employees in the agency’s Boston headquarters were impacted by the layoffs, according to a sources with knowledge of the agency. The layoffs left “only a handful of broadcast producers” at the office, according to a commenter on industry conversation platform Fishbowl self-identifying as a senior integrated producer. The creative department in Boston was also impacted, according to a commenter self-identifying as a junior copywriter.
In addition to the impact of the coronavirus pandemic on existing client business, the decision also follows U.S. Cellular ending its relationship with MullenLowe last month and naming Leo Burnett as its new lead creative agency.
“U.S. Cellular has had a rewarding and productive eight year relationship with MullenLowe and we are most appreciative of their contributions to our business within a demanding category,” a representative for U.S. Cellular said in a statement.
MullenLowe declined to comment. AgencySpy has contacted the agency and will update the post if there is further information on the account or layoffs.
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